Secondary Market - Meaning

• Secondary market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange. Majority of the trading is done in the secondary market. 
• Secondary market comprises of equity markets and the debt markets.
• The secondary market enables participants who hold securities to adjust their holdings in response to changes in their assessment of risk and return.
• They also sell securities for cash to meet their liquidity needs. 
• A variant of secondary market is the forward market, where securities are traded for future delivery and payment. Pure forward is out side the formal market. The versions of forward in formal market are futures and options i.e. derivative segment.